Use the following to answer questions :
Figure 18-1
-Note that in Figure 18-1, the production possibilities frontier is closer to the origin for Europe than for the U.S.This is because:
A)it is assumed that there are more people in the United States.
B)it is assumed that Europe has lower output in both industries.
C)it is assumed that the citizens of the United States are generally much better off than their European counterparts.
D)it is assumed that there is more inefficiency in Europe.
E)it is assumed that American labor is less productive than European labor.

Question

Use the following to answer questions :
Figure 18-1 
-Note that in Figure 18-1, the production possibilities frontier is closer to the origin for Europe than for the U.S.This is because:
A)it is assumed that there are more people in the United States. 
B)it is assumed that Europe has lower output in both industries. 
C)it is assumed that the citizens of the United States are generally much better off than their European counterparts. 
D)it is assumed that there is more inefficiency in Europe. 
E)it is assumed that American labor is less productive than European labor.

Quizplus · Accepted Answer

The Answer is B

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